Global Cricket Economy Faces Major Correction by 2027
The global cricket economy is anticipated to undergo a significant correction in 2027, as several high-profile media rights deals are set to renew in a more challenging market compared to the record highs observed in recent years. Senior executives cite shrinking advertising budgets, declining TV profits, and ongoing streaming losses as factors compelling broadcasters to reevaluate their spending capabilities.
Moreover, the consolidation within the industry, particularly the merger of Star India and Viacom18, has diminished competition for prime cricket properties. An executive remarked that the traditional model where broadcasters incur losses while rights owners and franchises benefit is no longer viable.
Shift in Broadcasting Landscape
This marks a notable shift from the robust investment climate of the 2022-23 cycle, which saw nearly $10 billion committed to cricket, including $6 billion for the IPL, and $3 billion for ICC tournaments and bilateral rights. Recent figures indicate that over $1 billion was spent on bilateral rights involving countries like India, England, Australia, and South Africa.
Predicted Decline in Rights Prices
According to Santosh N, managing partner at D&P Advisory, rights prices are expected to correct due to consolidation, alongside the ban on real money gaming. The previous bidding excitement is anticipated to subside. Even the highly valued Indian Premier League (IPL) might not be immune, as some franchise valuations of $1-2 billion may face caution as industry executives analyze their worth.
Valuation Adjustments Expected
Kunal Dagupta, former CEO of Sony’s media division in India, stated, “The peak has likely passed,” suggesting that ICC and BCCI rights could drop by 40-50%, while the IPL might experience a correction of up to 20%. There’s a general agreement among industry leaders that while IPL may retain a significant portion of its value, other rights could witness substantial reductions.
Challenges for ICC
The International Cricket Council (ICC) is already feeling the pressure, especially as Reliance’s JioStar has indicated it might struggle to honor the remaining two years of its India rights contract due to major losses. Despite proactive outreach for the 2026-29 cycle, initial discussions with major companies like Sony Pictures Networks India, Netflix, and Amazon Prime Video haven’t yielded solid bids, as none are willing to meet ICC’s valuation of $2.4 billion.
Impact on Revenue and Member Distributions
A decline in income from Indian rights would directly impact ICC member boards, most notably the Board of Control for Cricket in India (BCCI), which accounts for approximately 80% of ICC revenue. For instance, ICC generated $728 million in revenue with a net surplus of $474 million in 2024. Under the proposed revenue model for 2024-27, BCCI is projected to earn $230 million annually from an expected total revenue of $600 million. A notable shift in Indian rights would require a reevaluation of member distributions.
